adelaide meeting

Attended the briefing by Ian Burston today in Adelaide along with about 20 others including 7 of the top 20 shareholders or their representatives.
Ian Burston was very thorough with his update on Kogi Iron and was pleased with their progress to date and extremely confident of the future of the Company. The recently announced initial metallurgy which was fairly basic to see what the lay of the land was, succeeded in reaching 56% fe with nearly all of the alumina liberated with the sandstone. ( I personally thought that initial announcement could have hilighted these achievements ).
Their research leads them to believe that the phosphorous is attached to the iron ore and not imbedded in it, suggesting that crushing the ore further will liberate the phosphorous. This should also increase the fe levels.
Ian then explained in depth that we shouldnt be overly obsessed with the phosphorous levels anyway as nearly every steel mill blends a number of iron ores to achieve their particular recipe and if our ore is high in phosphorous but low in say alumina then they will match that up with other low phosp./high alumina ore to get a suitable blend. Having a high level of a particular impurity (say phos.) doesnt phase the steel mill as they get to charge a penalty and thus pay a lower price for that ore and conversely they do the same with the ore that is high in alumina yet low in phosp. The end result is they pay a lower price via penalties for all the different ores yet end up with just the right blend!
The JORC is looking good and on schedule if not even sooner and some of the other tenements are looking of particular interest for further iron ore discoveries.
I got the impression when a question was raised about a potential cap. raising that it would be a modest amount most likely in the second half of the year and quite possibly via a SPP or rights issue would be preferred to preserve investors holdings.
Concerns were raised about the share price performance and the seeming lack of promotion of the stock which was duly taken on board. Ian mentioned that area will be addressed very shortly with roadshows to brokers and instos. starting in the coming weeks. Ian and Don Carroll head overseas next week also to promote the Kogi story to a number of parties that have made contact and shown a keen
interest in the project.
I spoke to a number of the people who attended after the meeting and we were all of the same opinion..
a very good presentation and our patience will be richly rewarded in the not too distant future.
Hope this helps..